For a taxable forprofit lessee the full amount of the lease

For a taxable (for-profit) lessee, the full amount of the lease payment is tax deductible if the lease is a guideline lease.

Solution

Under guideline lease, ownership tax benefits accrue to the lessor. Like depreciation. Hence, all the payments made by lessee on account of lease is fully tax deductible.

Hence, given statement is True.